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Wednesday, September 13, 2017       14:44 WIB
PremierInsight: WSKT will delay its Waskita toll road (WTR) divestment due to offer mismatch between company and prospective investors.

Waskita Karya (WSKT IJ; Rp1,890; Buy) will delay its Waskita toll road (WTR) divestment due to offer mismatch between company and prospective investors. Even so, company expects WTR divestment with different scheme which involves seven Trans Java toll roads bundled into one package. If the option fails, company will go through initial public offering (IPO) in 1H18. (Kontan, Bisnis Indonesia)


Comment: The prolong uncertainty of the divestment may result in lower burn rate for the company due to limited working capital. Currently, company is in progress of issuing Obligasi berkelanjutan III with total amount of approx. Rp3tn and expects DER to stay below 2x this year. Hence, this could result in more conservative earnings guidance FY18 from higher interest expense. We think this might give negative sentiment on the share performance temporarily. We will review our earnings estimates based on this set of developments.

 

 

Sumber : IPS RESEARCH


 





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